Real estate developer, Superior Homes (Kenya) and Islamic bank Gulf African Bank, have signed a partnership that will enable home buyers to access mortgage financing at 11.75%.
The partnership will see investors seeking to buy housing units developed by Superior Homes Kenya, including Green Park in Athi River and Pazuri at Vipingo in Kilifi County, access mortgage financing within 48 hours and enjoy up to 90% financing from the Shari’ah compliant bank, with a flexible financing repayment period of up to 20 years.
Superior Homes CEO Shiv Arora noted that the partnership was timely and will help boost homeownership dreams for more Kenyans.
“This partnership with Gulf African Bank will allow our customers to enjoy lower profit rates and, more importantly, position us strategically to reach the niche group of customers guided by Shariah values,” said Mr Arora.
On his part, Gulf African Bank CEO Anuj Mediratta said that their customers will now be able to access financing needed to purchase housing units that meet their needs of affordability and quality.
Mr Mediratta added that the bank’s mortgage offering features mortgage transfers or takeovers from other financial institutions, outright purchases for new home buyers, diaspora mortgages, and equity release arrangements.
“Interested buyers will enjoy a record unprecedented approval time of 48 hours,” he said. Customers will also enjoy a repayment period of up to 20 years. We have a diverse range of affordable mortgage and home financing solutions that are Shariah Compliant and per the Diminishing Musharaka Shari’ah agreement.”
With Kenya currently having a housing deficit of approximately two million units per year attributed to rapid urbanization and a high population growth rate, this partnership is timely as it will promote home ownership through flexible mortgage financing, which reports show has remained low despite a high working population.